Suppose the preferences of foreign students change, decreasing demand for higher education in Australia, and at the same time the 'brain drain' continues, with more Australian academics moving overseas. We could predict that the price of higher education for overseas students will__________ and the quantity will__________ .

Question

Quizplus · Accepted Answer

The decrease in demand due to changing preferences would lower the price, while the brain drain reducing supply would increase the price. The net effect on price is uncertain, but the quantity will decrease due to reduced demand.

Suppose the Preferences of Foreign Students Change, Decreasing Demand for Higher